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Yes, things are improving.not

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Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
AMC order for a 1004.

Contacts given are the borrower and some agent in CA. The property is MLS listed here in TX. The sales price is $955,000. It is currently listed as new home construction for $675,000. It was originally listed for $990,000 for 180 days. I call our MLS showing systems and I am told that I must arrange all showings and appointments through the listing agent. I call the listing agent and he states there is no contract, he has never heard of the buyer or the selling agent. He denies access. He calls the builder who says he has never heard of them. I get angry e-mails from everywhere complaining that I called the listing agent instead of their contacts out of the state. The listing agent has been cut out of the transaction. The builder lied to him. They are not going to be happy that I disclose this including the current list price in the report.


Why would any lender loan on this type of transaction?
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
Desperate times, desperate times.

I had a builder cut the listing agent out - the sign was still in the front yard and still active in MLS. The lender didn't know until they got my report.

The listing agent got cut back in.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Because the lender is in CA. Any other questions?
 

Kevin Mc

Elite Member
Joined
Jun 7, 2004
Professional Status
Certified Residential Appraiser
State
New York
The property is MLS listed here in TX. The sales price is $955,000. It is currently listed as new home construction for $675,000.

Mr. Hicks, you have been provided your targets, quit being difficult and shoot......:rof:....can't make this stuff up, amazing.
 

Metamorphic

Senior Member
Joined
Mar 15, 2008
Professional Status
Certified Residential Appraiser
State
California
Because the lender is in CA. Any other questions?

Sounds to me like it was the Texas builder that was reneging on the listing agreement he signed.
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
I find that builders list the very basic model home in MLS .. then the final agreed on/"as built" value when they find a real live fool .. makes for screwy 'days on market' as well as screwy final sales figures ..
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Nail these suckers, Tim! This is a classic cash back fraud deal. I have IRS investigators that would just love to get the details of who is trying to do this.
 

Mile High Trout

Elite Member
Joined
Feb 13, 2008
Professional Status
Certified Residential Appraiser
State
Colorado
Pam, could you go into more detail please

Pam, simply, could you spell out the actual fraud here. Mabye I'm unfamilliar with fraud like this. If the builder owns the property, why would he set up a dummy listing agent, when he was working with out of state people? Where does the cash back & fraud happen, if the home is loosing listing value?

I've read the thread starter a few times, and cannot get my mind around it. Please explain.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
178 active listings of which 58 are foreclosure listings. 43 sales in the last six months of which 33 are foreclosure sales. Active listings reflect values of up to 40% less than homes of similar size and age of one year ago. At least 10 builder sites are abandoned with no evidence of continuing construction. Two years ago, this was a thriving upscale new home market where builders got what ever price they wanted.

Oversupply, big drop in market, foreclosures dominate the market. If you can't sell it on the open market here, just sell it to an out of town investor? What do you think the investor would think if they knew the builder was offering the house for $675,000, but selling it to them "as is" for $955,000.


Oh, the new selling agent has some private sales they would like me to consider that were not listed on the MLS.
 

ghrousseau

Member
Joined
May 5, 2006
Professional Status
Licensed Appraiser
State
Virginia
AMC order for a 1004.

Contacts given are the borrower and some agent in CA. The property is MLS listed here in TX. The sales price is $955,000. It is currently listed as new home construction for $675,000. It was originally listed for $990,000 for 180 days. I call our MLS showing systems and I am told that I must arrange all showings and appointments through the listing agent. I call the listing agent and he states there is no contract, he has never heard of the buyer or the selling agent. He denies access. He calls the builder who says he has never heard of them. I get angry e-mails from everywhere complaining that I called the listing agent instead of their contacts out of the state. The listing agent has been cut out of the transaction. The builder lied to him. They are not going to be happy that I disclose this including the current list price in the report.


Why would any lender loan on this type of transaction?

Run away............run away.
 
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